Question: please help me answer this sample question The following data relates to On-Court Company in questions 7-9: On-Court Company makes two types of tennis racquets
please help me answer this sample question
The following data relates to On-Court Company in questions 7-9: On-Court Company makes two types of tennis racquets with the following data. Pro Racquet Basic Racquet Unit sales price $400 Unit sales price $100 Unit variable costs $100 Unit variable costs $70 Annual demand 2.000 units Annual demand 5.000 units Machine hours 11,5 MH per unit Machine hours 2 MW per unit 7) What is the contribution margin per machine hour for one Basic racquel? A) $300 B) $200 C) $30 D) $15 8) What is the contribution margin per machine hour for one Pro racquet? A) $300 B) $200 C) $30 D) $15 On-Court Company has 4,000 machine hours available annually to manufacture tennis racquets. If the firm makes 2.000 Pro racquets to meet demand, how many Basic racquets will the firm be able to make during the year? A) No Basic racquets B) 1,500 Basic racquets C) 5,000 Basic racquets D) 500 Basic racquets 10) AM-FM Electronics uses a standard part to make different types of radios. The total cost to make 25,000 of this part is $95.000, which includes $40.000 of fixed costs and $55,000 of variable costs. If the firm buys the parts from an outside supplier for $3 per unit, it could avoid 20% of the fixed costs, and use the extra factory space to make another product that would earn an additional $15,000 of profit. If AM-FM Electronics outsources the parts, what is the effect on the firm's operating income? 4) 312,000 decrease in operating income B) $8,000 decrease in operating income C) $5,000 increase in operating income D) $3,000 increase in operating income
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